https://www.channelfutures.com/wp-content/themes/channelfutures_child/assets/images/logo/footer-new-logo.png
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
Channel Futures
  • NEWSLETTER
  • Home
  • Technologies
    • Back
    • Analytics
    • Artificial Intelligence
    • Cloud
    • Data Centers
    • Desktop
    • IoT
    • Mobility
    • Networking
    • Open Source
    • RMM/PSA
    • Security
    • Virtualization
    • Voice/Connectivity
  • Strategy
    • Back
    • Best Practices
    • Business Models
    • Channel 101
    • Channel Programs
    • Channel Research
    • Digital Transformation
    • Diversity & Inclusion
    • Leadership
    • Mergers and Acquisitions
    • Sales & Marketing
    • Specialty Practices
  • MSSP Insider
    • Back
    • Business of Security
    • Cloud and Edge
    • Endpoint
    • Network
    • People and Careers
    • Training and Policies
  • MSP 501
    • Back
    • 2020 MSP 501 Rankings
    • 2020 Hot 101 Rankings
    • 2020 MSP 501 Report
  • Intelligence
    • Back
    • Our Sponsors
    • From the Industry
    • Content Resources
    • COVID-19 Partner Help
    • Galleries
    • Podcasts
    • Reports
    • Videos
    • Webinars
    • White Papers
  • EMEA
  • Awards
    • Back
    • Excellence in Digital Services
    • 2020 MSP 501
    • Top Gun 51
  • Events
    • Back
    • CP Conference & Expo
    • Channel Partners Evolution
    • Channel Evolution Europe
    • Channel Partners Event Coverage
    • Webinars
  • Channel Mentor
    • Back
    • Channel Market Intelligence
    • Channel Educational Series
    • Newsletter
  • REGISTER
  • MSPs
  • VARs / SIs
  • Digital Service Providers
  • Cloud Service Providers
  • CHANNEL PARTNERS ONLINE
 Channel Futures

Channel Programs


New FalconStor CEO Making Cultural, Channel Strategy Changes

  • Written by The VAR Guy 1
  • January 12, 2011
From the outside, a dark cloud has stood over FalconStor Software since founder ReiJane Huai resigned as CEO in September 2010. But inside the halls of FalconStor, there are signs of real change within the storage company. Indeed, The VAR Guy witnessed them first-hand today.

From the outside, a dark cloud has stood over FalconStor Software since founder ReiJane Huai resigned as CEO in September 2010. But inside the halls of FalconStor, there are signs of real change within the storage company. Indeed, The VAR Guy witnessed them first-hand today. Newly named CEO Jim McNiel is leveraging a Hoshin strategy to prioritize strategic goals within the company. And new VP of North American Sales John Turner — a Symantec and Veritas veteran — is working closely with VP of Channel Management and Global Alliances Brendan Kinkade to bolster partner relationships. But that’s not all.

McNiel seems intent on changing FalconStor’s culture. Under Huai, many FalconStor employees attempted to outperform rivals by working six days per week. McNiel, in stark contrast, seems to promote an all-in team approach — making sure all 500 employees have shared visions and shared goals. As the old cliche goes, many hands lighten the load. Within the halls of FalconStor there is a massive poster listing FalconStor’s new core values and goals. The poster includes signatures from dozens of employees — as if they’re signing off on the vision. Apparently, similar posters hang in FalconStor offices across the globe.

Dark Moment

FalconStor certainly needs that type of unity right now. Former CEO ReiJane Huai, the company’s founder, stepped down amid a payment probe in September 2010. McNiel says he has no updates to share in the case and no further comment about it at this time.

McNiel and other FalconStor leaders have spent recent months reassuring customers and partners that the payment probe will not negatively impact the company’s long-term R&D, customer and partner strategies. McNiel says he signed on as CEO following an in-depth independent review of FalconStor’s accounting. Plus, McNiel notes that FalconStor filed its 10-Q report on time to the SEC in November 2010 — an  apparent indication that the Huai payment probe was an isolated event.

Either way, FalconStor is undergoing a transformation. On the one hand, former CEO Huai is a well-known innovator, software engineer and entrepreneur. But on the other hand, McNiel is an established communicator who understands sales, marketing and communications. So it’s pretty easy to see where McNiel is taking the company. He certainly wants to maintain the best of FalconStor’s R&D, while improving the company’s reputation for ease-of-use and partner engagement.

McNiel discusses his channel partner vision in this FastChat video:

Leaders Huddle

The halls of FalconStor were mostly empty today. Like many companies on Long Island, FalconStor closed its headquarters today amid a storm that dumped 18 inches of snow. But McNiel and Turner — who joined FalconStor last week — were huddled in FalconStor’s offices talking strategy. And Kinkade, located in California, was dialing in on speaker phone. McNiel’s move into the CEO post and Turner’s decision to join the company both were announced earlier today; Kinkade was promoted to lead channels in November 2010.

Turner, meanwhile, says he joined FalconStor because the company is an innovator within a growing market that’s primed for disruption. While most companies still focus on traditional backup and storage, Turner and McNiel evangelize service-oriented data protection. Translation: FalconStor’s software protects individual IT services (such as a virtualized application).

McNiel describes service-oriented data protection in this FastChat video:

Fewer OEMs, More VMware Partners

Over the past year, McNiel — who had been consulting with the company at length — has helped FalconStor to reduce its reliance on OEM revenue and to bolster relationships with VMware solutions providers. The reason: OEM relationships with hardware companies can come and go, especially as giants like Oracle gobble up hardware companies like Sun. In stark contrast, traditional VAR relationships can last a lifetime.

A prime example: McNiel says OEMs represented 26 percent of FalconStor’s channel business in 2010, down from 48 percent in 2010. In stark contrast, VAR-related sales have steadily climbed, he adds.

McNiel is dusting off an old channel game plan and modernizing it for the cloud age. In the 1990s, thousands of Novell NetWare VARs made more money by reselling and supporting Cheyenne Software’s backup software. McNiel, Huai and many FalconStor employees are Cheyenne veterans. Today, McNiel is using a similar strategy in the VMware market. He claims VMware resellers can make $7 supporting FalconStor for every $1 worth of VMware they sell.

Roughly 25 VMware partners have embraced the strategy. And FalconStor will continue the effort at the VMware Partner Exchange conference in February. The conference is expected to attract 4,000 to 5,000 VMware partners.

Here Comes the Cloud

No doubt, McNiel also sees opportunities to cash in on the cloud. He describes the effort in this FastChat video, courtesy of TalkinCloud.com (The VAR Guy’s sister site):

Also, McNeil points to a cloud computing relationship with Hewlett-Packard, which has agreed to leverage FalconStor for managed storage services. And some vertical market MSPs use FalconStor for their managed storage services.

Still, FalconStor will need to sharpen its marketing messaging to ensure the company is part of cloud storage conversations across the channel.

Top Priorities

So, where are McNiel and his management team heading next? Here are some clues:

  • From McNiel: FalconStor has to fulfill the promise of service-oriented data protection, allowing channel partners and IT administrators to manage thousands of objects across an enterprise from a single web-based interface called BlueStone. To deliver on that vision, FalconStor now leverages a RUM development strategy (Reliability, Usability and Manageability). Watch for major developments in Q2 2011, led by VP of R&D Bob Daly and CTO Walter Curti.
  • From Turner: FalconStor needs to build a world-class sales organization. That includes a re-vamped compensation plan “Whatever we do for our sales team, we’ll do for our partners,” Turner adds. “They’re an extension to my organization.”
  • From Kinkade: The channel team will leverage FalconStor’s corporate values while focusing on sales processes and partner coverage. “We need to make sure we have the right partners in the right geographies,” he says. “It’s about quality not quantity. We need to go wider with each partner.” It sounds like Kinkade is preparing some partner surprises, planned for late January and again in March 2011.

Lingering Challenges

No doubt, McNiel is working to change FalconStor’s culture and partner strategy. But he also faces lingering challenges. The company’s stock trades at about $3.41, down from about $13.95 in October 2008. At a time when the storage market enjoys exploding growth, FalconStor’s Q3 revenue for 2010 was $19 million, down 12 percent from Q3 2009.

And then there’s lingering questions about former CEO Huai and the payment probe. Some investors have filed suit over the probe. And until the probe ends, it seems like there’s somewhat of a cloud over FalconStor.

But look inside and the changes within FalconStor seem genuine. The VAR Guy wonders: Are they?

Sign up for The VAR Guy’s Weekly Newsletter, Webcasts and Resource Center. Follow The VAR Guy via RSS, Facebook and Twitter. Follow experts at VARtweet. Read The VAR Guy’s editorial disclosures here.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Channel Programs Cloud From the Industry Leadership Videos

Related


  • McAfee Employees Getting Pink-Slipped in Likely 'Belt-Tightening'
    McAfee also reportedly is closing its Israel software development center.
  • Microsoft Surface Pro 7+ for Business
    Microsoft Launches Surface Pro 7+ for Business, Sold Only via Channel
    The newest version of the Surface Pro is available with LTE Advanced option.
  • SMB cybersecurity
    SMBs’ Cybersecurity Risk Awareness Is Rising
    The majority of SMBs would switch MSPs for the right cybersecurity support.
  • Cloud backup
    Carbonite® Backup for Microsoft 365
    Microsoft 365 is a powerful suite of business productivity applications. But like any cloud platform, it’s not immune to data loss. Microsoft does not bear responsibility for the protection and retention of data. While Microsoft ensures the availability of its infrastructure, it recommends that customers assume responsibility for protecting the data in its suite of […]

Leave a comment Cancel reply

-or-

Log in with your Channel Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • Your Cloud Data Is Protected, But Is It Portable?
  • Hornetsecurity Acquires Altaro for Expanded Security Services
  • Akamai Technologies Partners Migrating to New Channel Program
  • Cloud Providers in the Channel Flee From Parler

Galleries

View all

New, Changing Partner Programs: AWS, Tech Data, Avaya, Verizon

January 11, 2021

Industry Perspectives

View all

Help Your Customers Mitigate Malware: Viruses, Worms, and Trojans…Oh My!

January 15, 2021

SMBs’ Cybersecurity Risk Awareness Is Rising

January 13, 2021

Your Cloud Data Is Protected, But Is It Portable?

January 12, 2021

Webinars

View all

Blueprint for a Scalable MSSP Practice in 2021

January 21, 2021

Who’s Behind the Mask? Hacker Personas Explained

January 26, 2021

How Managed Hosting Providers Thrive with the Alternative Cloud

February 24, 2021

White Papers

View all

Why Subscription Business Model

January 15, 2021

The Ultimate MSP Guide to Sales Efficiency

January 14, 2021

Eight Reasons Why MSPs Need IT Industry-Specific Sales Tools

January 14, 2021

Upcoming Events

View all

Channel Partners Virtual

March 2, 2021 - March 4, 2021

Channel Partners Conference & Expo

November 1, 2021 - November 4, 2021

Videos and Fastchats

View all

FASTCHAT: How SOAR Eliminates Security Challenges and Elevates Service Provider Revenues

January 6, 2021

Happy Holidays from Channel Partners & Channel Futures!

December 21, 2020

FASTCHAT: How Old, Unpatched Technologies Are Creating New Security Threats for MSPs and Their Customers

December 3, 2020

Twitter

ChannelFutures

.@IBMServices snaps up #MSP Taos for #hybridcloud expertise. dlvr.it/RqggQR https://t.co/Fy3uPDtLNw

January 16, 2021
ChannelFutures

.@LenovoBusiness launches its thinnest #ThinkPad to date @CES, revamped ThinkBooks and #ThinkReality glasses.… twitter.com/i/web/status/1…

January 16, 2021
ChannelFutures

Help your customers mitigate #malware @Tech_Data #cryptolocker #antivirus #ransomware #cybersecurity… twitter.com/i/web/status/1…

January 15, 2021
ChannelFutures

Advantages of the Subscription business model for MSPs and IT Resellers @kaspersky dlvr.it/RqgDJn https://t.co/ay694fudp3

January 15, 2021
ChannelFutures

Cloud #distributor @Pax8 launches in UK with leadership team in place. dlvr.it/RqfJWx https://t.co/RsKDCowM5V

January 15, 2021
ChannelFutures

bit.ly/3oO2vFY twitter.com/Craig_Galbrait…

January 15, 2021
ChannelFutures

The Ultimate MSP Guide to Sales Efficiency @zomentum dlvr.it/Rqc63q https://t.co/rHIVLkR01K

January 15, 2021
ChannelFutures

Eight Reasons Why MSPs Need IT Industry-Specific Sales Tools dlvr.it/Rqc62k https://t.co/MQDcIYc7G9

January 15, 2021

MSSP Insider

Newsletters and Updates

Sign up for The Channel Report, Channel Futures Update, MSP 501 Newsletter and more.

Live Channel Events

Get the latest information on the next industry-leading Channel Partners event.

Channel Partners Online

Want more? Find more channel news and analysis on our sister site, Channel Partners.

Media Kit And Advertising

Want to reach our audience? Access our media kit

DISCOVER MORE FROM INFORMA TECH

  • Channel Partners Online
  • Channel Partners Events
  • MSP 501
  • MSSP Insider
  • IoT World Today
  • Webhostingtalk

WORKING WITH US

  • Contact
  • About us
  • Advertise
  • Newsletter

FOLLOW Channel Futures ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2021 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.
This website uses cookies, including third party ones, to allow for analysis of how people use our website in order to improve your experience and our services. By continuing to use our website, you agree to the use of such cookies. Click here for more information on our Cookie Policy and Privacy Policy.
X